Weight of econ releases in different markets

Discussion in 'Trading' started by jj90, Apr 16, 2008.

  1. jj90

    jj90

    Hey guys,

    I know the big 3 are PPI/CPI/NFP with Fed meetings occasionally, but which ones tend to dominate in a bull vs bear market scenario? I read on some thread that certain types of econ releases are looked at more in bear markets vs bulls and am trying to clarify which ones so I can see reactions to them.



    Also, for anyone who trades currencies, primarily EUR JPY and CAD, are there any specific econ #'s (besides the big 3) that are product specific? Although most CB's use some type of CPI to measure inflation/unemployment, they all use different ways and I'm trying model possible market reactions to certain econ variables given market conditions at the time.

    Eg. EUR strength is because of EUR rates constant vs USD lowering. So assuming credit crisis ends here and Fed stops cutting rates (= USD strength/bull market), given the dominant econ data for EUR in the market environment as such, if there is a certain reaction or no reaction, you get where I'm going with this.....

    Or if given same scenario but USD keeps weakening/EUR strength, is that simply because EUR rates are more likely to be held constant or because the Fed is trigger happy with rates...

    I guess I'm looking for specific currency variables vs simple USD negative correlation. I've done ok trading metals and energies off US data/correlation but am getting hammered in currencies because I'm not seeing the difference.